The future of the Nissan Pathfinder in the Australian market hangs in the balance as sales figures plummet and prices soar. Over the past five years, Pathfinder sales have drastically declined by over 80%, raising serious concerns about the model's viability. This downturn can be attributed to several factors, including the absence of a hybrid powertrain option and unfavorable currency exchange rates, which have significantly inflated the vehicle's price. Andrew Humberstone, the managing director of Nissan Oceania, acknowledged the challenges facing the Pathfinder, stating that its 2022 launch has been hampered by these issues.
Last year, only approximately 500 Pathfinders were sold in Australia, a stark contrast to the 2,712 units sold in 2019, the final full year of the previous generation model. This figure represents a staggering 92% decrease compared to the 6,433 sales recorded in 2015, the model's peak performance year. Humberstone admitted that the Pathfinder's sales performance has fallen short of expectations. He emphasized the vehicle's inherent appeal and the positive customer feedback, but pointed to the unfavorable currency exchange rate as a major obstacle. Because the Pathfinder is manufactured in the United States, fluctuations in exchange rates directly impact its cost in the Australian market. Humberstone also mentioned the potential impact of global macroeconomic factors, including tariffs, which could further complicate the situation. He stressed the need to assess the long-term viability of the Pathfinder in light of these economic uncertainties.
While no specific tariffs have been imposed between the US and Australia under the current US administration, the potential for increased duties on goods from various countries, including those where vehicle components are sourced, remains a concern. The price of the Pathfinder has increased significantly. The current model starts at $59,945 before on-road costs with the reintroduction of the ST-L model grade, while the top-of-the-line variant reaches a price of $82,850, nearing $90,000 drive-away. This represents a substantial price jump compared to the previous generation, which was available from $44,240 to $70,140. This price increase has made the Pathfinder less competitive against rivals such as the Kia Sorento, which starts at around $51,000, and the Toyota Kluger Hybrid, which offers a petrol-electric powertrain and standard all-wheel drive from approximately $61,000.
Humberstone acknowledged the possibility of discontinuing the US-made Pathfinder, emphasizing the importance of segment size, profitability, and overall business case viability. He suggested that Nissan might consider sourcing alternative seven-seater vehicles from its joint venture in China if that proved to be a more financially sound option. He reiterated Nissan's commitment to maintaining an agile business strategy to ensure profitability for both the company and its dealer network, while also providing competitive pricing for consumers. He explained that ongoing challenges related to currency exchange rates and potential tariffs would necessitate a reassessment of the Pathfinder's business case. He also noted that the situation is dynamic and subject to change, implying that new information could lead to different decisions.
Nissan's joint venture with Dongfeng in China produces a different vehicle also marketed as the Pathfinder. This Chinese-market Pathfinder features a more fuel-efficient 2.0-litre turbo engine, updated styling, and larger interior screens. The Australian-market Pathfinder relies on a less fuel-efficient V6 petrol engine, a disadvantage compared to the Toyota Kluger, the best-selling large SUV in Australia, which is exclusively offered as a hybrid. The fuel consumption difference is significant. Fuel economy stickers reveal that the all-wheel-drive Pathfinder consumes 88% more fuel than the Kluger Hybrid (10.5L/100km versus 5.6L/100km). A previous generation Pathfinder offered a 2.5-litre supercharged petrol-electric hybrid option, but this was not carried over to the current model. Humberstone acknowledged that the absence of a hybrid powertrain, specifically an e-Power version similar to those offered in the smaller Qashqai and X-Trail SUVs, has likely impacted the Pathfinder's sales performance. He cited production limitations as the reason for not offering this option.